China, Which Is Labor-Abundant, Has a Comparative Advantage in Clothing

question 108

Multiple Choice

China, which is labor-abundant, has a comparative advantage in clothing production, which is labor-intensive. Which of the following models explains this pattern of comparative advantage?

• A)the Ricardian model
• B)a model of increasing returns
• C)the Heckscher-Ohlin model
• D)a model of autarky

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Definitions:

Tropical Cyclones

A rotating, organized system of clouds and thunderstorms that originates over tropical or subtropical waters and has a closed low-level circulation.

Pacific Ocean

The largest and deepest of the Earth's oceanic divisions, extending from the Arctic Ocean in the north to the Southern Ocean in the south.

Tropical Winds

Wind systems that occur near the Earth's equatorial region, characterized by warm temperatures.

Surface Water

All bodies of water found on the Earth's surface, such as rivers, lakes, wetlands, and oceans, as opposed to groundwater.